On 30th June 2022, Prime Minister Narendra Modi started the 6000 crore RAMP(Raising and Accelerating MSME Performance) scheme in the “Udyami Bharat” programme at Vigyan Bhawan in New Delhi. Since they collectively make up approximately one-third of the nation’s GDP, India’s micro, small, and medium-sized businesses are a crucial pillar of the country’s growth journey.
PM Modi conveyed that expanding the MSME sector is very important. He feels that micro, small, and medium-scale enterprises are a huge pillar of India’s growth. The prime minister also declared that no international tender will be conducted for orders up to Rs. 200 crores. In addition, the prime minister announced that no international bidding will be held for orders up to Rs. 200 crores.
What is the RAMP scheme for MSME?
The RAMP scheme is known as the rapid and Accelerating MSME programme. This is a central sector programme, which is associated with the World Bank. For any micro and small business, funding and market access are the main pillars. This programme aims for that. It closely works with all the states and union territories, over SIP’s.
The outlay for the RAMP scheme is Rs. 6,000 crores. With an improvement in the impact of the current MSME programmes, it aims to scale up the coverage and implementation capability of MSMEs in all the states.
In order to make the ramp scheme for MSMEs more independent and competitive, this programme will complement the Aatmanirbhar Bharat Abhiyan by encouraging ideas, fostering innovation, and incubating new entrepreneurship and businesses through improved practises and processes, the development of quality standards, the use of technological tools, and an improvement in market access.
RAMP would be executed in conjunction with the World Bank with an investment of 6,000 crores over five years with the goal of scaling up the implementation capability and coverage of MSMEs, with impact enhancement of existing ramp schemes for MSME initiatives.
Also Read: MSME Schemes For Empowering Women Entrepreneurs
What is the CBFTE scheme?
This is known as the Capacity Building of First Time MSME Exporters scheme. With the help of this scheme, the Government of India wishes to enhance their position in the global chain. This programme was specially designed to help the MSME businesses, to uplift their products and step into the global market. This scheme shall not only uplift the status of these businesses but also help India create a better place in the international marketplace.
The “Capacity Building of First-Time MSME Exporters” (CBFTE) plan and new elements of the “Prime Minister’s Employment Generation Programme” were also introduced by the prime minister during the occasion (PMEGP).
The “Capacity Building of First-Time MSME Exporters” (CBFTE) programme encourages MSMEs to provide goods and services of a high calibre for the worldwide market. This would increase Indian MSMEs’ involvement in the global value chain and assist them in realising their export potential.
The CBFTE programme seeks to increase Indian MSMEs’ involvement in the global value chain by encouraging them to provide services and goods for the global market that meet international standards. The MSMEs will be able to realise their export potential.
For first-time exporters, the CBFTE scheme will simplify the export procedure by providing financial assistance, assistance with certification, etc. Regardless of the size of their products, the MSMEs should target the global market, according to the PM.
Also Read: MSME Loan Scheme – Best Government Business Loan Schemes For MSMEs
Other Government Schemes for the MSME
To give the MSME sector essential and prompt support, the government periodically introduces new programmes such as the Emergency Credit Line Guarantee Scheme, MUDRA Yojana, and Scheme of Fund for Regeneration of Traditional Industries (SFURTI). Numerous individuals across the nation have benefited from these programmes.
MSMEs in India make up over one-third of the nation’s economy, making them an important pillar of the economic process. For the previous few years, MSMEs have made up around 48% of India’s exports. India’s exports increased significantly in FY22, from a peak of USD 330 billion to USD 422 billion.
According to the Prime Minister’s Office (PMO), “Udyami Bharat” is a reflection of the government’s ongoing commitment to advancing the empowerment of MSMEs from the outset. To promote the MSME sector, which has benefited millions of people nationwide, the government periodically introduces new initiatives such as the MUDRA Yojana, Emergency Credit Line Guarantee Scheme, and Scheme of Fund for Regeneration of Traditional Industries (SFURTI).
In response to the situation, PM Modi said: “The MSME sector makes for over one-third of India’s total economy. The importance of MSME is key to India’s export growth “.
Also Read: Business Loans For MSMEs — Overview, Features & Benefit, Eligibility, Interest Rates And More
In the last eight years, our administration has boosted the budget by more than 650 per cent to enhance the MSME sector, he claimed. He emphasised that MSME is crucial for maximising exports and for creating the most jobs possible.
The government’s definition of MSME, according to PM Modi, is “Maximum Support to Micro Small and Medium Enterprises.” In the last eight years, our administration has boosted the budget by more than 650 per cent to enhance the MSME sector, he claimed. The Indian government has seen and accepted the potential growth small businesses have and how they can contribute to the growing global market. The RAMP scheme and the CBFTE scheme were thus introduced to support such business owners to upscale their businesses.